KUALA LUMPUR (Jan 13): The FBM KLCI fell 0.49% at the opening bell on Tuesday, weighed by losses at index-linked financial sector stocks, in line with the weaker sentiment at regional markets.
At 9am, the FBM KLCI fell 8.54 points to 1,726.54.
The top losers included Kuala Lumpur Kepong Bhd, Hong Leong Financial Group Bhd, PPB Group Bhd, AMMB Holdings Bhd, Alliance Financial Group Bhd, Hong Leong Bank Bhd, Genting Bhd, Lafarge Malaysia Bhd, BIMB Holdings Bhd and Maxis Bhd.
Asian stocks slipped on Tuesday as a continuing slide in crude oil prices dampened risk appetite, while the dollar nursed losses against the safe-haven yen, accodring to Reuters.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 percent, it said.
M & A Securities research head Rosnani Rasul in a market preview Tuesday said Wall Street was on the defense on Monday attacked by the drop in oil price, pushing Goldman Sachs to lower its short term oil price projection.
Hence, she said the flood gates were opened leading Wall Street to end in the red back-to-back this week.
Rosnani said Goldman Sachs has cut its short term oil projection sharply to US$41 per barrel (futures) from US$70 per barrel as Gulf oil producers showed no sign of cutting output.
“We have mentioned previously that none of global oil producers would cut its production as they will be in dire needs to meet fiscal target now that prices have tumbled sharply, about 50% from its year high in 2014. It’s now all about microeconomics survival and external environment is of less concern.
“This will continue to be the sore point in the global equity market this quarter, Malaysia included.
“We reiterate our view that lack of powerful catalyst would continue to stoke trading fear. Hence, lack of pushing factor in risk taking and hence, lethargic bellwether performance in our view,” she said.